(VIANEWS) – Shares of Huazhu Group (NASDAQ: HTHT) jumped by a staggering 29.25% in 21 sessions from $27.9 at 2022-10-28, to $36.06 at 19:25 EST on Tuesday, following the last session’s upward trend. NASDAQ is dropping 0.59% to $10,983.78, after three sequential sessions in a row of losses.
Huazhu Group’s last close was $35.63, 26.41% below its 52-week high of $48.42.
Why is Huazhu Group Stock Going Up?
During the recent sell-off of Chinese stocks, Huazhu Group (NASDAQ:HTHT) was among the names swept up. Huazhu Group is a China-based hotel operator. It has a portfolio of four hotel brands. The group is seeking to meet the growing demand for hotel rooms among the middle class.
Huazhu’s revenues are expected to continue to expand. The company has a pipeline of projects that should continue to provide a steady stream of revenue to investors. The company has been increasing its margins year-over-year since CY2014, and margins are expected to widen by 7% in CY2018. Moreover, the company has improved its return on investment and marginal efficiency.
Huazhu’s growth looks particularly impressive given the slowdown in the Chinese economy. During the last five years, Huazhu’s EBITDA has grown at a rate of two times its revenues. The company’s margins have increased from 27.1% in CY2014 to 35.3% in CY2017. Huazhu’s margins will continue to improve over the next few years, which should drive higher quality income growth without incurring costs.
Huazhu’s operating income increased by 156% to $58.1 million. The company also opened its flagship Joya Hotel in Shanghai. Huazhu’s occupancy percentage remained flat at 84% in C1Q2018.
The company has expanded its membership program. It now has 103 million members. This represents a 20-fold increase from 5.1 million members in CY2011. The company has $1.5 billion for repurchasing shares.
Huazhu has been able to identify growth opportunities and has been able to execute on them. The company is now focused on the economy hotel segment. It has grown revenues at a consistent rate over the past five years.
About Huazhu Group
H World Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. As of June 30, 2022, it operated 8,176 hotels with 773,898 rooms. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.
Earnings per Share
Huazhu Group’s trailing twelve-month EPS is $-1.16.
For the 12 trailing months, the company’s return-on-equity, which is a measure of the profitability of a company relative to shareholders’ equity, was negative at -15.32%.
Huazhu Group’s last week, last month’s, and last quarter’s current intraday variation average was 0.67%, 1.30%, and 4.08%.
Huazhu Group’s highest amplitude of average volatility was 3.91% (last week), 4.51% (last month), and 4.08% (last quarter).
Growth Estimates Quarters
The company’s growth estimates for the current quarter is a negative 3150% and positive 590% for the next.
Huazhu Group is worth more than its moving average for 50 days of $33.44 (and higher than its moving average for 200 days of $34.79).
Today’s last reported volume for Huazhu Group is 2118841 which is 30.67% above its average volume of 1443810.
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